Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 138: To ask the Minister for Finance if the Revenue Commissioners have sought to apply the removal of benefit-in-kind in respect of the provision of crèche facilities for employees' children announced in budget 2011; if so, which organisations have already removed it; and the number that have yet to do so. [36100/11]

Michael Noonan (Limerick City, Fine Gael)
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The benefit in kind exemption in respect of the provision by employers of crèche facilities was provided for in section 120A of the Taxes Consolidation Act 1997. The removal of this exemption was announced in Budget 2011 and given effect to by section 7(1)(b) of Finance Act 2011. I am informed by the Revenue Commissioners that a dedicated meeting with representatives of the payroll industry takes place immediately after each Budget. The purpose of this meeting is to ensure that payroll systems are adjusted correctly to ensure compliance with all related measures announced in the Budget in advance of their deployment for the following tax year.

In addition, I am further informed that the ending of this exemption was publicised on the Revenue website immediately after the Budget announcement and at the same time details of this and other Budget changes were made available in leaflet form.

It is the responsibility of employers and their advisers to ensure their payroll systems take account of Budget changes and, in the case of the change in the rules on benefit in kind, there is no obligation on employers to formally report to Revenue that they have complied with the new requirements. Instead, issues of any such non-compliance will be discovered if a Revenue audit is carried out on the employer's business.

Where Revenue becomes aware of an employer who has not implemented the changes, the employer is immediately required to implement them and may become liable to interest and penalties for failure to correctly operate the PAYE system. If the Deputy is aware of such situations, he should advise Revenue.